MANILA, Philippines – Filipinos who want to install solar panels to ease their electricity bills may now have less paperwork to deal with, but exactly how simple the process becomes depends on what kind of system they install.

The Department of Energy’s (DOE) new rules cover solar systems meant primarily for the consumer’s own electricity use rather than for selling power back to the grid under a net-metering program. But within that broad category are three different setups, each with its own requirements: connected zero-export systems, isolated zero-export systems, and small micro-solar systems (MSS).

The biggest change is that distribution utilities such as Meralco and electric cooperatives can no longer require pre-installation clearances, technical permits, or inspection fees as a condition for installing systems covered by the policy. Utilities may still study how installations affect their networks, but must shoulder the cost themselves and cannot use the study to delay or block installation.

Which rules apply to you?

The easiest category is an MSS, which are small, consumer-grade or plug-and-play setup.

To qualify, the solar panels must have a total capacity of no more than 1 kilowatt (kW), paired with a micro-inverter with a maximum output of 0.8 kW. The system must also meet electrical and safety requirements. (READ: What will it take for solar power to take off in the Philippines?)

For consumers installing an MSS, they simply need to notify their distribution utility — such as Meralco — using the DOE’s prescribed form. No building permit or Certificate of Compliance (COC) from the Energy Regulatory Commission is required under the circular.

Consumers with analog meters also don’t have to wait for a meter replacement before installation. The utility has up to 12 months after notification to replace the meter with one suitable for MSS installations, while the existing meter may continue to be used temporarily.

Those with larger solar installations fall under what the DOE calls Self-Generating Facility Zero-Export Solar Systems (SGF ZESS). Unlike an MSS, there is no capacity ceiling, but the system must be configured so that electricity is not exported to the distribution grid.

There are two kinds: connected SGF ZESS and isolated SGF ZESS.

A connected SGF ZESS remains connected to the distribution system but uses equipment that prevents excess solar electricity from flowing into the grid. Consumers installing one must notify their distribution utility and secure a building permit.

A completely isolated SGF ZESS, meanwhile, operates independently from the distribution grid. No notification to the utility is required, but a building permit still is.

While both connected and isolated SGF ZESS require a building permit, consumers may not have to get a new one if their local government verifies that an existing building permit is sufficient for the solar installation.

The COC requirement depends on who will use the system. Households, clinics, hospitals, and other medical facilities are exempt from securing a COC for SGF ZESS installations. Other users, such as businesses, generally still need one.

And if you’re hoping to earn from the excess electricity your solar panels generate, these streamlined rules are not for you. Any electricity sent back to the grid under these arrangements will not earn bill credits or payments.

To receive credits for excess solar power, consumers still have to enroll in the net-metering program and enter into a net-metering agreement with their distribution utility, which are goverened by a different set of paperwork requirements.

Energy Secretary Sharon Garin said the policy is intended to remove costs and requirements that can discourage consumers from adopting solar in the first place.

“By simplifying the process and removing unnecessary costs and requirements, we are opening the door for more households, clinics, and small businesses to generate clean electricity for their own use,” Garin said.

According to the Department of Energy, the measure is meant to directly support the energy directive of President Ferdinand Marcos Jr. in his 2026 State of the Nation Address. Marcos had called for faster renewable energy adoption and for rooftop solar and battery storage installation to become simpler and more affordable.

The Philippines currently gets 25% of its energy from renewables and hopes to reach a renewable energy target of 35% of the power generation mix by 2030 and 50% by 2040. – Rappler.com